Home Information Packs (HIP) are now law for all dwellings that have 3 or more bedrooms which are put up for sale.

The HIP contains important information that buyers and sellers need to know. From the 1 August 2007 anyone marketing a 3+ bedroom property, or their representative, will be legally required to prepare a HIP and make it available to potential buyers of the property.

For sellers, providing a Pack upfront should reduce the likelihood of any nasty surprises in the selling process that could delay the sale, as buyers will be able to make more informed decisions about purchasing their home.

For buyers, the Pack provides essential information about properties they are considering buying, free of charge.
 

The Pack is made up of Compulsory items and Optional items:-

Compulsory items:-

Energy Performance Certificate (EPC)

Energy Performance Certificates tell you how energy efficient a home is on a scale of A-G. The most efficient homes - which should have the lowest fuel bills - are in band A.

Sale statement

The sale statement should provide some basic information about the site, including:

The address of the property being sold

Whether the property is freehold, leasehold or commonhold

Whether the property is registered or unregistered

Whether or not the property is being sold with vacant possession

Searches

The HIP must include:

The local land charges register relating to the property being sold. If the search is carried out by the local authority, an official search certificate will be provided. Alternatively a personal search company can be used.

Other records held by the local authority on matters of interest to buyers, such as planning decisions and road building proposals. These are referred to as local enquiries in the HIP Regulations. A local authority or a personal search company can be used.

The provision of drainage and water services to the property. The local water company or a personal search company can be used (however, the search must comply with the HIP Regulations, schedule 9)

Evidence of title

These documents prove that the seller owns the property and therefore has the right to sell it. Where the property being sold is registered, certain documents that are available on request from the Land Registry must be included in the Pack. These provide an up-to-date official record of who owns the land, and consist of:

Official copies of the individual register (made up of a property register, proprietorship register and, typically, a charges register)

An official copy of the title plan

In the case of the sale of a commonhold interest, official copies of the register and title plan should be produced for both the unit and common parts. The Land Registry has details of additional requirements for sales of commonhold properties.

For sales of unregistered land, the Pack must include copies of a certificate of an official search of the index map (obtained from the Land Registry), and those documents that the seller intends to rely on to provide evidence of title to the property, and thus the right to sell it.

Leasehold and Commonhold Documents

Most of the documents that must be included in the Home Information Pack are applicable to all transactions, but some are needed only for leasehold and commonhold sales.

The required Leasehold documents are:

A copy of the lease

Any regulations or rules that apply to the property that aren't mentioned in the lease and any proposed amendments to same

Statements or summaries of service charges covering the previous 36 months

Where appropriate, the most recent requests for payment of service charges, ground rent, insurance against damage for the building in which the property is situated, and insurance in respect of personal injury caused by or within the building during the 12-month period before marketing began

The name and address of the current or proposed lessor, and details of any managing agent that has been appointed or proposed by the lessor to manage the property

A summary of any works being undertaken or proposed that will affect the property or the building in which it's situated.

The required Commonhold documents are:

An official copy of the individual register and title plan for the common parts. This is in addition to official copies for the unit.

An official copy of the commonhold community statement. You can download this document from The Land Registry here.

Where they are reasonably obtainable, or sellers can reasonably be expected to be aware of them, the following documents and information are also required:

Copies of any regulations or rules not described in the commonhold community statement and any amendments proposed to those regulations or to the commonhold community statement

Copies of any requests for payments made in the previous 12 months in respect of commonhold assessment, reserve fund levy and insurance (if not covered by a request for commonhold assessment)

The name and address of any managing agent or other person appointed or proposed to be appointed by the commonhold association to manage the commonhold

A summary of current or proposed works affecting the commonhold.

Home Information Pack Index

The compulsory documents include a HIP Index listing the documents contained in the Pack.

The Index provides a checklist for sellers, buyers, estate agents and enforcement authorities. Where a document that must be included in the Pack is unavailable, the Index must say so, give the reason it is missing, and indicate what steps are being taken to obtain it. Where documents are added to or removed from the Pack at a later stage, the Index should be revised accordingly.

Optional items:-

Home Condition Report

A Home Condition Report contains information about the physical condition of a property, which sellers, buyers and lenders will be able to rely on legally as an accurate report.

The Report is an important part of the Pack, and can be included by sellers on a voluntary basis.

Sellers who provide a Report will have an early opportunity to carry out repair work on the property or obtain quotes prior to marketing.

Buyers can use it at the beginning of the home-buying process to minimise the possibility of being faced with unexpected repair bills and other surprises.

Lenders can benefit by using the Reports to inform their valuations, reducing the need to repeat a detailed on-site inspection at the buyer's expense.

The Government believes there will be significant benefits to home sellers if they top up their Packs to include full Home Condition Reports, and that this is a product that the market can deliver. Communities and Local Government is working with stakeholders to facilitate the voluntary take-up of the full Report, and has invested resources in promoting and developing it for consumers.

Legal Summary

HIP's will contain some complex documents that can be difficult to understand. The optional summary of the legal content of the pack could therefore be very helpful to buyers, although it will not remove the need for buyers to take their own legal advice as well.

Home Use & Contents forms

Home Use and Home Contents forms let sellers give buyers information on a range of matters relating to the property.

These include information on boundaries, notices, services, sharing with neighbours, planning permissions and other matters of interest to potential buyers.

It is usual for sellers to declare which fixtures and fittings and other contents of the property are included in the sale, are excluded from the sale, or are subject to negotiation.

The Law Society also produces its own forms to help solicitors and licensed conveyancers produce Packs.

Other Documents

Sellers could speed up the sale if they include non-standard searches in the HIP where appropriate.

For example, it's standard practice to obtain a mining search in areas where coal mining has taken place. Sellers in these areas will save time if they provide this search in the Pack.

Other searches cover rights of way, ground stability and actual or potential environmental hazards such as flooding and contaminated land.

Sellers will also want to include guarantees and warranties for work already carried out on their homes.